We have a sophisticated and diverse expertise in these areas, including insurance bad faith litigation, insurance defense, and coverage issues.

We have over 25 years cumulative experience working with and interpreting comprehensive general liability policies (CGL) involving claims for products and completed operations, multiple environmental issues, including the following:

• various pollution exclusion clauses;
  
  
• bodily injury;
  
  
• commercial/residential property damage claims;
  
  
• intellectual property claims;
  
  
• wrongful termination and other employment-related matters;
  
  
• sexual harassment and sexual molestation claims;
  
  
• continuing and progressive property damage claims (Montrose Chemical Corporation v. Admiral Insurance, 10 Cal. 4th 645 (1995)). In progressive property damage cases, we understand the subtle distinction between the duty to defend and the duty to indemnify.
  

We have addressed many different coverage issues, including, but not limited to, the following:

• trigger;
  
  
• late notice;
  
  
• retroactive dates;
  
  
• product recall;
  
  
• product damage;
  
  
• the insured's compromise of the insurer's rights by initiating settlement negotiations;
  
  
• environmental clean-up costs.
  
  
• In addition, our lawyers have been involved in the advertising injury clause issues, both pre and post Bank of the West case, as well as a considerable number of other issues arising in the commercial tort area.
  

In the area of insurance coverage litigation, our lawyers have successfully defended numerous bad faith cases. We understand the subtle distinctions and nuances regarding the various legal theories applicable to breach of the covenant of good faith and fair dealing and related punitive damages claims. Our unique understanding of the law in this regard has enabled us to develop novel and convincing jury instructions which have aided in the defense of complex bad faith claims. Our expertise in this area has also enabled us to resolve many bad faith cases by way of summary proceedings or by motion.

And, we have specialized experience in the area of first party coverage issues, including, but not limited to, the following:

• coverage opinions for property insurers regarding fire losses, flood losses, measure of damages, rain/seepage/water damage, property damages while in transit, and theft losses;
  
  
• opinions regarding coverage under liability policies for permissive users of automobiles, additional insureds, contractual liability coverage, contractual indemnity obligations, and whether "road rage" is an "intentional act" which negates coverage;
  
  
• insurance coverage and bad faith litigation regarding alleged failures to defend insureds under liability policies.
  

Our firm has litigated declaratory relief actions regarding a broad range of coverage issues. The vast majority of the coverage cases we have handled have been resolved by way of summary legal proceedings, or by a favorable settlement in advance of trial or during trial. Carlson & Messer LLP has also worked with insurance company clients to institute programs to minimize first-party lawsuits, and we have analyzed and interpreted policy clauses to ensure compliance with regulations and statutory law.

In defending cases, Carlson & Messer LLP has the same goals as you, your principals and your insureds. Our goal is to resolve cases as early in the litigation as possible, with minimal expense. To assist in the monitoring and control of costs, we routinely prepare litigation plans and budgets for our clients which provide a structured and organized plan for handling and resolving cases. These litigation plans provide a forecast of activity and anticipated expenses during a 12 month period. Our litigation plan enables us to render an early and accurate assessment of the insured's potential liability and helps avoid the pitfalls of unnecessary discovery, document review, and investigation. We update the plan on a 60-90 day basis, depending on the activity in a given case. The litigation plan, in conjunction with our evaluation reports, provide a framework for the entire handling of the case and informs the client of our planned course of action and the anticipated fees and costs involved over a given period of time.

We recognize the benefits of mediation as a means to save substantial litigation costs by avoiding a lengthy and costly jury trial. In any complex construction defect case, we advocate mediation as a means to resolve cases. Mediation can also pave the way for an early resolution of a case since mediation usually provides the parties with an objective assessment of their respective strengths and weaknesses in the case.